Creditors’ ability to threaten derivative litigation gives them some additional leverage in negotiations. But, creditor standing should not been seen as an expansion of the duties that directors and officers already owe to the corporation.

To the extent that a few plaintiffs and their attorneys are bringing frivolous suits merely to obtain settlement payments and plaintiff attorneys’ fees, adopting fee-shifting bylaws may be a prudent way to defend the corporate treasury.

In the short-term, it is clear that the Kahn v. M&F Worldwide Corp. decision will have a significant influence on transactional practice. As to the long-term impact on litigation, we will continue to wait and see.

The Delaware Court of Chancery has once again issued an opinion holding that managers of Delaware Limited Liability Companies (LLC) owe fiduciary duties to the LLCs they manage, even in the absence of a provision in the operating agreement establishing the existence of the fiduciary duties.